operations: ethical and environmental

Question 1

costs of ethical business

Answer 1

• increases costs
• reduces profits

Question 2

benefits of ethical business

Answer 2

• customers are prepared to pay more
• higher sales compensate for higher costs

Question 3

primary industry standards

Answer 3

• low wages
• poor standards of living
• inability to afford education
• children required to work

Question 4

fairtrade foundation

Answer 4

This is a non-profit organisation that is:

• licensed to use the Fairtrade mark
• aims to increase demand for Fairtrade products
• raises awareness of the need for Fairtrade

Question 5

costs of fair-trade

Answer 5

• Fairtrade products can cost more, which may put some customers off
• Limits the choice of suppliers for a business

Question 6

benefits of fair-trade

Answer 6

• Quality of life should improve for workers in primary industries
• The long-term prospects for children in the area should improve
• Fairtrade mark will make products more attractive to customers
• Improves the company reputation if they are seen to be ethically responsible

Question 7

ways a business can operate ethically and environmentally

Answer 7

• renewable energy
• reduce energy consumption
• reduce transport
• recycling

Question 8

costs of recycling

Answer 8

• Recycled material may reduce the quality of the finished product
• Image of the product may be perceived as inferior
• Some items, such as paper, can only be recycled a limited number of times
• Recycled materials need to be sorted and processed, which can take time

Question 9

benefits of recycling

Answer 9

• Can save money if recycled materials are used to make new products
• Improves the brand image of the organisation
• Reduces cost because less landfill is required
• Takes less energy to recycle than to extract and manufacture new materials

Question 10

costs of minimising packaging

Answer 10

• Increased risk of damage due to insufficient packaging
• May become less attractive to customers

Question 11

benefits of minimising packing

Answer 11

• Can reduce production costs as less materials are required for packaging
• Can reduce transport costs as goods are smaller and lighter
• Reduces cost because less landfill is required
• Can improve brand image